At the January 1st, 2024 reinsurance renewals, global reinsurer SCOR reported a 13.6% increase in estimated gross premium income (EGPI) for its Property & Casualty (P&C) business.
This growth surpasses the projections set out in its Forward 2026 strategic plan, which was unveiled in September 2023.
As part of this plan, SCOR has focused on expanding its P&C business in selected lines of insurance, aiming to create a balanced and robust portfolio amidst a persistently challenging market environment.
SCOR has seen a notable EGPI increase of 13.3% in specific sectors, including Engineering, Marine, Inherent Defects Insurance (IDI), and International Casualty, which contributes to the diversification of its portfolio.
The company renews approximately 62% of its P&C reinsurance premiums in January, accounting for 41% of its total P&C premiums.
Jean-Paul Conoscente, CEO for P&C at SCOR, shared his insights on the renewals, stating, “Following strong renewals throughout 2023, marked by the most challenging reinsurance market conditions in the last two decades, SCOR continues to enhance the quality and profitability of its P&C portfolio. We have maintained a disciplined approach to pricing and terms & conditions for the January 1st, 2024 renewals.”
The renewals have brought about a modest growth of 0.8% in treaty P&C lines to €2.20 billion, compared to the previous year.
This increase is attributed to SCOR’s cautious approach to natural catastrophe underwriting and a strategy to reduce exposure in the US Casualty segment. Conversely, the company’s treaty global lines portfolio expanded by 9.4% at the January 2024 renewals to €1.50 billion.
SCOR has indicated a conservative interest in US Casualty, with a slight reduction in EGPI for this segment.
The company anticipates an enhancement in its technical profitability, evidenced by a 1.5 point improvement in the net underwriting ratio (excluding Alternative Solutions). This improvement is bolstered by a 3.1% increase in pricing, including a 6.6% rise in non-proportional business.
Jean-Paul Conoscente further commented on the market dynamics, “In this favorable market, we are capitalizing on attractive opportunities, as evidenced by the 13.6% growth this January. I anticipate that these favorable market conditions will persist throughout the year, supported by the demand from cedents and continued discipline by reinsurers. SCOR’s teams are actively engaging in the market to generate value and effectively execute the Forward 2026 plan.
During the renewal period, SCOR successfully focused on growing its preferred lines, securing favorable terms and conditions, and enhancing the profitability of its P&C reinsurance portfolio.
The company also improved its retrocession program by increasing capacity and coverage without additional costs.
Looking ahead to future renewals, SCOR expects to see prices that reflect the underlying risks in 2024. The company anticipates continued portfolio growth throughout the year, including a significant number of Alternative Solutions contracts. SCOR is also focused on expanding risk partnerships with both new and existing partners.
by Yana Keller
